Twiddling Thumbs Ahead Of A US Data Barrage

Chart, Trading, Courses, Forex, Analysis

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On Tuesday, U.S. stocks ended the day with little change, as investors remain grounded ahead of critical economic data, including the Federal Reserve preferred inflation gauge, which is expected to shed some light on the timing of the first Fed cut. With the corporate earnings season nearing the end of the runway, investors shifted their focus back to economic indicators and the anticipated trajectory of U.S. interest rates. However, in a data-dependent world, when have we never focused on economic data of one type or another?

Traders are keenly aware that the recent components of the Consumer Price Index (CPI) and Producer Price Index (PPI) have influenced the Personal Consumption Expenditures (PCE), and it is unlikely that they will receive an inflation print below the Federal Reserve's target rate. This contrasts with the sub-2% prints observed over the past six months. The January CPI and PPI data have shown unexpectedly high readings, hawkishly altering the market landscape. The rates market has shifted from an anticipated six rate cuts by the Federal Reserve in 2024 to just three, indicating that investors might find themselves on the wrong end of the stick if a top-side beat is big enough to threaten the 3 cut narrative.

All in all, Wall Street shimmied within narrow trading ranges. The limited movements are unlikely to provide significant direction for Asian markets as traders are happy to twiddle thumbs ahead of a U.S. data barrage.

Among the nine ETFs, BlackRock's iShares Bitcoin Trust (IBIT) has emerged as the focal point, drawing significant attention in early days -market activities. Blackrock's profits will be in for BTC windfall with the coins they bought in the $30,000 being sold to the new wave of investors + $50,000.

F.X. markets are focused on the RNBZ, which is sometimes viewed as a harbinger of G-10 policy, although its migration swell is causing inflation problems.

Net immigration alleviates the constraints on the labour market's supply by increasing the available workforce. However, it also tends to have an inflationary effect on rents and house prices.

Oil prices surged more than 1% in response to media reports suggesting that the Organization of the Petroleum Exporting Countries (OPEC) and Russia-led producers are contemplating extending the current output cuts.


More By This Author:

Bracing For A Busy Data Calendar
The Fed's Favored Measure Of Inflation On Tap: "The PCE Deflator"
Navigating Uncertain Times In The Oil Markets

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